China’s reserve-ratio cut “is a bold move and one aimed at
maintaining growth rates, which will provide support for equity
investors,” said Tim Schroeders, who helps manage $1 billion at
Pengana Capital Ltd. in Melbourne. “The timing is probably just
ahead of China committing to European bailout funds.”

China Reserve Requirements

The proportion of cash Chinese banks must set aside will
drop half a percentage point from Feb. 24, freeing up more
capital for loans, the central bank said Feb. 18 on its website.
The cut may add 400 billion yuan ($64 billion) to the financial
system, according to Australia & New Zealand Banking Group Ltd.

Franshion Properties jumped 4.2 percent to HK$1.97 in Hong
Kong. Komatsu Ltd., a maker of construction machinery that gets
more than a fifth of its revenue from China, rose 3 percent to
2,423 yen in Tokyo.

The MSCI Asia Pacific Index gained 12 percent this year
through Feb. 17, compared with an 8.2 percent advance by the S&P
500 and an 8.8 percent increase by the Stoxx Europe 600 Index.
Stocks in the Asian benchmark were valued at 14.6 times
estimated earnings on average at the last close, compared with
13.1 times for the S&P 500 and 11 times for the Stoxx 600.

Shipping Stocks

Container shipping stocks rose after Maersk Line Ltd., the
world’s largest container carrier, said it will cut 9 percent of
its shipping capacity between Asia and Europe. The reduction is
positive news for the loss-making industry, and provides
credibility to proposed rate increases on the Asia-Europe trade
lanes, Citigroup Inc. said.

Futures on the Standard & Poor’s 500 Index rose 0.5 percent
today as Prime Minister Lucas Papademos said Greece has found
the additional spending cuts needed to secure a debt bailout.
The index added 0.2 percent in New York on Feb. 17 after U.S.
employment, manufacturing and housing data beat estimates.

Japanese steelmakers rose after Credit Suisse raised their
stock-price estimates. The investment bank expects export prices
for the material to recover while material costs fall.

Billabong increased 8 percent to A$2.83 in Sydney after
saying it will consider a A$3 per share takeover from buyout
firm TPG Capital after the bid was revised to allow for an asset
sale. The shares extended gains after surging 46 percent on Feb.
17 after Billabong announced TPG’s initial approach.

Among stocks that fell, Universal Entertainment Corp.
slumped 21 percent to 1,516 yen in Tokyo after Wynn Resorts Ltd.
redeemed its 20 percent stake in the pachinko-machine maker at a
31 percent discount and accused Chairman Kazuo Okada of making
improper payments to Philippine regulators.